Tip 9: Slow Rise Will AccelerateTip 9: Slow rise will accelerate, don’t copy the top and wait for bound
Tip 9 needs to meet three conditions as follows:
1. The price increases slowly along the MA5 and MA10;
2. The rate of rise is not sharp, but new highs are created constantly;
3. The price will accelerate and deviate from the MA5.
Usually, the price increases slowly, and correction is small bearish candles, then rise again along the MA5(attack line) and MA10(defense line).If the market moves as this, don’t guess where is the top, just buy at the correction. When the market accelerate as several large candles with long wick and the price is far away from MA5, then the stage top is likely to form.This is more effective in big time frame.
Moving Averages
Using 150 and 200 simple moving averages www.tradingview.com
Using 150 and 200 simple moving averages produces interesting results. When 150ma goes under 200ma it usually produces a price increase. However, since 150ma is shorter period, and all moving averages want to find their right place, it will go back up where it belongs, above 200ma. This also produces another interesting result, which is price decrease. This price drop however is usually followed by a sharp price increase as can be observed in SPX.
Moving Average - Educational StudyHi guys, I would like to present to you this educational trading method that was adopted by Rayner Teo-1.72% . ( search him up , he is a great trader and mentor )
Basically the moving averages act as a support and resistance levels and can indicate an ongoing trend , you can use them to time your entries and ride the trend.
Keep your SL trailed alongside with the trend.
You can keep adding positions every time the price hits the EMA's and shows that it respects them as a valid support/resistance area!
You collect your profit only when you think the trend has ended and and it's time to close the trades.
Update status
Relationship between Bund and Euro US DollarWhat is the Bund?
The Bund is the German 10-Year Treasury bill, also known as a government bond. A holder of a bond is a creditor, and the issuer of a bond is called a borrower or debtor. When the price of the Bund increases, the yield received on that bond decreases and vice versa.
What is the relationship between Bund and EURUSD? Why is this relationship there?
The relationship between the Bund and EURUSD is inversely correlated - when the yield of the Bund increases, the Euro is bullish, and when it decreases it is bearish. One thing to note is that the price of a bond and the yield received is also inversely correlated.
The relationship is there because during periods of uncertainty, people generally look for less risky positions (they may liquidate any equity positions they may hold and invest in bonds if they have low confidence in the stock market). This new demand for bonds pushes the price higher, but forces the yields down. A quick equation can show why this occurs:
Let's say we have a bond priced at £1,000 with a 10% coupon rate (the amount you can expect to return per annum). The equation would be (£100/£1000) where yield = coupon value/price of bond. If the price of the bond increases to £2000, the yield decreases (£100/£2000) = 5% PA.
For a bond holder looking to sell the bond at a later date, this is good as they have already locked in the rate of interest that they will be paying. However, as a buyer of a bond, you want to be buying low to lock in a higher yield.
A concise explanation about what influences bond prices can be found at Investopedia (www.investopedia.com). I have borrowed from that below.
The factor that influences a bond more than any other is the level of prevailing interest rates in the economy. When interest rates rise, the prices of bonds in the market fall, thereby raising the yield of the older bonds and bringing them into line with newer bonds being issued with higher coupons. When interest rates fall, the prices of bonds in the market rise, thereby lowering the yield of the older bonds and bringing them into line with newer bonds being issued with lower coupons.
Bond yields and FX
The spreads of the 10Y bonds can be used to gauge the direction for currencies as well. When the yield spread increases in favour of a certain currency, it is likely that you will see that currency appreciate vs others. When a yield spread tops or bottoms out, you can expect the related currency to begin to fall/rise in the following months. Playing on interest rate differentials is known as carry trading.
Above graph explained
The Bund is testing back to its 200 day EMA. On the recent occasions when it has tested here, it has failed to break above, however, the upward momentum appears to be intact .
In the short term there is clear divergence between Bund & EURUSD.
Furthermore our model shows the Bund as being a weakest bear suggesting it would like to go & turn bullish and indeed it would be back in a bull trend through 154 vs close last night of 152.9.
Form your own opinions.
Losses may exceed deposits.
EURUSD - Daily Chart very simple "trend following strategy". . This is a very simple, yet very effective trend following strategy.
1. Display price using Heiken Ashi candlestick. (Removes a lot of the noise and allows to see smoother movement).
2. Trading daily charts allows less whipsaw movement and much cleaner entry/exits.
3. Confirm if trend is UP, DOWN or SIDEWAYS.
Entry Signal is:
1. Medium to Large HA candle changes from Green to Red, or vice versa shooting up/dn through the 8-WMA & 14-MA.
2. The candle MUST breech both moving average lines to validate entry long or short.
3. Enter trade Long/Short on close of that candle.
4. RSI 90% of time will be in Overbought or Oversold area when candle breech trigger occurs. (further validating entry)
5. Typically the large HA candle that breeches the two moving average lines will NOT have a wick below it.
* Avoid entering during times of consolidation, characterized by mix of red/green HA candles with wicks on both sides.
* Look for entries after touch of support or resistance areas.
* Trade becomes invalid AFTER ENTRY if at any time a candlestick changes color and shoots up or down in the
opposite direction crossing BOTH of the 8/14 moving average lines.